The UK Government has sparked fierce criticism from business and industry leaders after unveiling legislation that would permanently ban new oil and gas exploration licences in the North Sea.
The Energy Independence Bill would remove the North Sea Transition Authority's powers to award new exploration licences, raising fresh concerns over jobs, investment and Britain's growing dependence on imported energy.
Repealing the proposed new law - which fulfils Labour's 2024 manifesto commitment to end new licensing - would need a parliamentary majority.
The move comes just two weeks after ministers approved the Jackdaw gas field off Aberdeen and as the industry awaits a decision on Rosebank, the UK's largest known untapped oilfield.
Neither project would be directly affected by the legislation, having received licences under the previous Conservative government.
However, the proposed ban raises fresh questions about the long-term future of the North Sea and the thousands of jobs supported by the industry across the North-east of Scotland.
The legislation would introduce Transitional Energy Certificates, allowing additional production from areas close to existing licensed fields or within established developments.
The wider bill also includes measures to scrap gas standing charges and accelerate electricity grid connections, while the Government has announced a £2billion energy wealth fund, financed by oil and gas tax revenues, to support renewable and low-carbon energy investment.
Prime Minister Andy Burnham said: 'Together, these changes will bring bills down for good, give families greater security and put Britain back in control of its energy future.'
Energy Secretary Miatta Fahnbulleh said the bill would help to 'build a clean energy future which people feel in their pockets, households and communities, ensuring support reaches those who need it most'.
Russell Borthwick, Chief Executive at Aberdeen & Grampian Chamber of Commerce, said: 'The UK will not achieve energy independence by choking off one of its greatest national assets.
'The North Sea has powered our economy for more than half a century, supporting hundreds of thousands of jobs, generating hundreds of billions in tax revenues and providing the energy that keeps our homes warm and businesses running.
'At a time of growing geopolitical uncertainty, it makes no sense to deliberately accelerate the decline of domestic oil and gas production, only to become increasingly dependent on imports from overseas.
'Britain will continue to need oil and gas for decades to come. The question is whether we produce more of it here, supporting British jobs, investment and energy security, or pay other countries to produce it for us.
''Energy independence cannot mean replacing our own resources with greater reliance on foreign suppliers. We should be making the most of the North Sea while investing in the energy technologies of the future. These are not competing ambitions. They are two sides of the same coin.'
The legislation also drew fierce criticism from opposition politicians.
Shadow Energy Secretary Andrew Bowie, the Conservative MP for West Aberdeenshire and Kincardine, described Labour ministers as 'utterly delusional' and accused them of being 'totally oblivious' to the 'economic and energy threats this country faces'.
He added: 'Might as well hang a closed for business sign over Aberdeen and the North Sea.'
Energy expert Prof John Underhill of University of Aberdeen said the legislation could allow existing discoveries to be developed using nearby infrastructure, while also opening the door to more remote projects.
'As such, it provides important and welcome clarity that a gas discovery like Tornado in the West Shetlands, which lies >80km away from existing infrastructure, can now go ahead,' he said.
Source: Aberdeen & Grampian Chamber of Commerce
